dani: this is "bloomberg

daybreak: europe," i am dani burger in london alongside manus cranny in b.i.. here are the stories that set your agenda. manus: in the bear trap. u.s. futures jump as the bear market close. but beijing sour sentiment in asia. a new prime minister in asia -- in australia taking the r eins. plus, the world economic forum in davos kicks off. an outstanding list of interviews. the dabo's elite are arriving, the addenda will be set, genda. -- ukraine will top the addenda. dani: the question as to where

-- whether the bottom is in or not, sentiment says the bottom is not in. we briefly touched their market, kissed it, but did not embrace it, down 19% from the peak. we are moving higher today. perhaps someone believes we are not having -- after ending the day flat, s&p 500 futures and nasdaq futures moving nearly a percent higher, and nasdaq trading at the lowest since november 2020, the s&p 500 has fallen for seven consecutive weeks, longest losing streak since 2001. european stocks following the trend higher, but the flight in the ointment is china come on down more than 1%. concerns about new covert cases in beijing. we will dive into that in a moment. what does the cross as a board look like? manus: it's amazing how we have almost ignored that china risk when you look across the assets. one hide line -- headline, biden

supports japan in a permanent you and security c. we will come back -- you insecurity seat. we will come back to that. wti rises slightly this morning, a slight concern about the tightness on the product market, 10 year paper yields rise again. the question you need to ask yourself is whether the survey is right, the 10 year will into the third quarter, 3.08 according to the bloomberg survey, and james bullard wants 3% on rates by the end of the year. he wants to frontload the gun. that will be an interesting week for bonds. do they cover? aussie dollar, the dollar generally rolling over this morning, the first major loss last week.

for the moment, shorts have been demolished in the aussie dollar trade and the aussie rises about 7/10 of 1%. dani: let's get into some of those top stories from our reporters around the world. manus: equities trading higher after last week's losses, almost pushing the s&p 500 into the bear market territory. consumer stocks lost $550 billion in value, some of the biggest names in retail will hit the tape this week. abdree -- anfreea, is it a their market rally? andreea: if we knew the answer

to that question. going back to what you mentioned about u.s. consumer stocks, that is a real concern for investors, because consumers were being touted as one group that was really underpinning the u.s. economic growth. you are seeing the supply chain issues as well as higher interest rates, really hurting consumers and u.s. consumer stocks. after consumers have squirreled all of that money away during the lockdown, they are out in force spending, but with higher interest rates, inflation, supply chain disruptions we are seeing because of china, it is a good question whether we will see these buy the dip and sell the rally mentality. when you throw in a what is going on in china with

lockdowns, weighing on sentiment , u.s. futures being up, it is something the market is adjusting to. dani: adjusting is the name of the game. thank you. to australia, which has voted in a new government. we are joined by paul allen. what has the reaction been to the win? paul: anthony albanese very happy with his victory, he often references his humble beginnings as a child of a sickle mother brought up in public housing. -- single mother brought of into public housing. it was brought up that he is moving into public housing again. market reaction has been fairly muted. there's not a tight correlation between equities prices and a change in government. the labor government does not

yet have an outright majority. 76 seats needed for that. it is closing in on that and vote counting is continuing. as manus mentioned, the aussie dollar strengthening on the certainty of government going forward. the chinese government has said it hopes canberra can regain its rationality with this election. australia and china have had a falling out the last few years. the french foreign minister saying a defeat of scott morrison suits him very well. france unhappy with australia's cancellation of the submarine deal. anthony and billy see -- anthony anthony c -- the new prime minister is now traveling. manus: the currency on the move, and rb and bonds also playing into the narrative with the aussie dollar. thank you, paul allen.

in beijing, they have reported a record number of covert cases during the current outbreak. that revives concerns that an threes may impose a lockdown. the growing outbreak underscores the challenges china faces with the covid zero approach. for more on the markets intimate, let's get to our china markets acker -- anchor, rishaad salamat. the concern is these numbers we are seeing, 99 cases in beijing on sunday, could lead to the road to shanghai, a bigger lockdown. rishaad: that is the concern. 99 doesn't seem like much in the whole scheme of things, it is up from 61 the day before. it is a small number, but as you are mentioning, it could tally up and then we get a situation like shanghai had been facing. shanghai reducing its lockdowns gradually and we have different risk groups now, which are certainly at the moment, some are allowed to come out and

others not. challenges facing china with regard to what is happening over there, aging in particular. it has really hit the economy. the unprecedented shutdown of shanghai sent a warning to municipal authorities that the early mishandling of the virus could lead to a rapid spread and the people who have jobs and those authorities, perhaps losing more jobs. it has a huge economic cost. millions of residents of shanghai confined to their homes for weeks. even with easing and restrictions in place, many banks as a result of this shred their economic forecast for the second quarter, and perhaps for the whole year. there we go. that's a look at what is going on. fear is weighing on sentiment. dani: certainly.

down more than 1% on the csi 300. thank you. the world economic forum has returned to davos. it was postponed last year because of the pandemic and let's get to francine lacqua, standing by. a rare summer davos, perhaps less billionaires there with russia and china not participating. francine: less billionaires, a lot of wall street titans not coming. one of the fixtures, stephen schwarzman, will not be here. the goldman sachs chief executive will not be here. the focus is on the 45 main challenges. ukraine, climate change, the world economy, and challenges the go with it, including inflation, food inflation, feeding the poor. there is a lot of skepticism about what can be achieved. we don't have the style -- star

power of the past, and it came under could a schism -- came under criticism, i would say the last five years, but since ukraine because of its association with russian oligarchs. the question is what does devils achieve? -- davos achieve? i don't know if there's gonna be some sort of marshall plan to could -- marshall plan for ukraine. there is no snow and it is strange. we arrive and they give you a little packed, and this year they give you an umbrella. manus: prepare for everything. never underestimate your own star power. you don't need david solomon there, you are the beacon at the top of that building. francine: flattery. manus: it will give me everywhere, they told me. [laughter] francine lacqua in davos.

maybe not. when we come back, more on the news of the week. including the managing director of the world economic forum, and the chairman of fortescue metals group. this is bloomberg. ♪

manus: it is your monday addition of "daybreak: europe." we are waiting to go to the president of the united states, he is in japan, waiting for him to come through that door with the leader in japan. they talked about a lot of

things, haven't they? in terms of working more closely to counter the sort of strength of china, in terms of their position, in terms of their behavior. dani: right. they've also talked about working together when it comes to north korea, their nuclear program, they talked about russia. they also said in the readout, they will deepen cooperation, and work on supply chains and clean energy. manus: we will get to that when the president arrives in a moment. let's catch up with the were right, she's got the first word headlines. laura: president biden has warned about the growing outbreak of monkeypox, rare and potentially deadly cousin of the small packs -- smallpox virus. infections have been rising in europe and north america. there have now been 20 cases

reportedly in the u.k., with the health secretary agency expecting and significant rise in infections this week. the recently ousted pakistani prime minister is promising a sit in demonstration on wednesday. he wants the government to quit and new elections to be called. he has held a series of rallies across the country recently, drawing massive crowds. sources tell bloomberg that broadcom is in talks to buy a vmware. the chipmaker has been making a series of purchases as it looks to expand its business into one of the hardest and most diversified in the industry. vmware has market value of around $40 billion. a plane load of more than 70,000 pounds of baby formula has arrived in the u.s., starting an emergency program to alleviate a national shortage. the government says more formula will start arriving in u.s. stores as early as this week.

shortages due to supply chain snarls were worsened in february when the biggest manufacturer issued a recall and closed a plant after a small number of infants fell unwell. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus? dani? dani: we were just monitoring president joe biden, in japan meeting with the prime minister. you can see them both, they are speaking at the palace. again, in tokyo. we will listen in in a moment. readout we've gotten so far, they talked about ukraine, they talked about russia. a lot of it is about cooperation to counter china's coercive behavior. manus: i think that is it, the u.s. and japan will announce progress on a number of projects. space, etc. let's listen in. we have a translation.

>> we are currently faced with a crisis that shakes the foundation of the international order, which is russia's aggression against ukraine. to defend resolutely an international order based on the rule of law, unity amongst allies and augmented countries are required more now than ever. another thing is the challenge of ensuring peace and prosperity of the indo pacific region is a most important strategic issue for the international community. in japan and the united states, they are taking on a leadership role.

in this sense, we highly value the visit by president biden to japan as he powerfully demonstrates the united states enhanced engagement in this part of the region. also, together with president biden, we would like to make tomorrow's summit a sure success. based on this awareness, today, frank and useful discussion took place on matters of international community. first, on russia's aggression, and unilateral attempt to change the status quo by force, is totally unacceptable. we reaffirm to respond

resolutely together with the international community, including the g7. also confirmation was made to support fully the government and people of ukraine. we also discussed the impact the ukraine situation could give on the indo pacific. for china, we concur to monitor closely recent activities of the chinese navy and joint military exercise of china and russia. strongly oppose the attempt to change the status quo by force. in the east china sea and south china sea, and the united

states, responding to china issues, including human rights. also, we affirmed our two countries's basic position on taiwan remains unchanged, and underscores the importance of peace and stability of the taiwan straits, and indispensable limit for the peace and prosperity of the international community. and called for peaceful resolution of taiwan straits issues. we share a serious concern over nuclear and missile issues, including the launch of icbm-plus ballistic missiles. we will cooperate even more closely with our friend. to an immediate resolution, i

reiterated my request for for understanding and cooperation. president biden extended his strong support. after this, president biden will be meeting with family members of abductees. at a time when the regional security environment is becoming more severe, with president biden, we reaffirmed the need to have forceful deterrence and defense capability of the japan-u.s. alliances. i stated my determination to fundamentally reinforce japan's defense capabilities and secure substantial increase of its defense needed. president biden strongly supported my determinations. we also concurred to expand and

deepen security and defense cooperation between japan and the united states. further, president biden reiterated his commitment to japan's defense, and to make sure the standard deterrence will remain unwavering. we concurred to keep in close touch, including on the ministerial level, between our two countries. in addition, to alleviate important communities of okinawa and others, we also concurred to steadfastly implement the u.s. forces in japan realignment, including construction, and replacing facilities.

because the situation around nuclear weapons is getting severe, we also concurred about realistic arguments about nuclear pro level or should -- proliferation and look forward to a world without nuclear weapons. engagement in the end pacific by the united states, and especially the economic order, is becoming ever more important. japan welcomes the launch of the indo pacific economic framework by president aydin, and will participate in cooperate -- president biden, and will participate in cooperate. japan hopes to see the united states return to the tpp from a strategic perspective. also, in order to expand and deepen japan's u.s. economic

cooperation, we agreed to hold ministerial level japan-u.s. economic policy consultative committee, the so-called economic two plus two, in july. further, we concurred in cooperation on economic security, including the development of advanced semiconductors, and specific cooperation regarding state. with brushes of russian -- with russia's aggression of ukraine severely damaging the situation over energy and food, we confirmed we shall despond through coordination with the g7 and like-minded nations, as well as international organizations. through such cooperation, japan and the united states hopes to engage in initiatives to realize a sustainable and inclusive

social, economic environment. regarding the new form of captive is him which i am proposing, president biden reconfirmed his strong support. by cooperating with president aydin, who is promoting policies that focus on -- president biden, who was promoting policies that focus on the working class, we hope to promote a global trend of common economic policies among major countries we also exchanged views on global health, cancer research, climate change, human rights and democracy, and other global challenges. and agreed that our two countries should lead efforts of the international community in such areas. further, i express the necessity

to reform and strengthen the united nations, including the security council, which bears an opponent responsibly for the peace and security of the international community, and gained president biden's support. the president stated the united states will support japan becoming a permanent member of a reformed security council. the pacific ocean does not separate japan and the united states. rather, it unites us. those are the words delivered by president kennedy to prime minister e keita, which resonate with amplified weight in today's context. i conveyed the importance of human resource development and people to people exchange toward a free and open indo pacific,

and president biden concurred. japan will hold the presidency of the g7 next year. as world faces an unprecedented challenge caused by russian aggression in ukraine and the heightened risk of the use of weapons of mass destruction, at year's g7 summit, i hope we can demonstrate the will of the g7 to resolutely reject aggression by force, threat by nuclear weapons, and attempts to overturn the international order with a strength that will make a mark in history. as the prime minister of japan, the only country to have ever suffered atomic bombing, i believe there is no other venue as fitting as hiroshima to demonstrate our commitment to peace.

i hope we can vouch to the world that mankind will never cause catastrophe brought about by nuclear weapons that present biden and other leaders at the g7 will together confirm in front of the peace memorial, our solidarity to defend peace, global order, and values. i explained such plans to the president. we reaffirmed that next year's g7 summit will be held in hiroshima and we shall work together for its success. today, as an outcome of our meeting, we decided to issue a joint statement. this statement is the joint strategy of japan and the united

states as we keep in mind the current situation in ukraine and the strategic importance of the indo pacific and aim to uphold and develop a free and open international order. under the current situation of international affairs, which may be described as the end of the post-cold war era, the true value of the japan-u.s. alliance is being tested more stringently than ever before, in order to realize a free and open indo pacific and establish free and open international order. japan and the united states will engage in utmost efforts with irreversible resolve for strengthening our partnership.

thank you very much. i would now like to give the floor to president biden. present biden: -- president biden: thank you. the alliance between the u.s. and japan has grown stronger, deeper and more capable as we work together to take on the challenges just as important as the opportunities of our rapidly changing world. a great example of this, we view japan's lunar rover, just after lunch. a symbol of how our space cooperation is taking off, looking toward the moon and mars. i'm excited of the work we will do together on the gateway station around the moon and forward to the first japanese astronaut joining us on the mission to the lunar surface under the artemis program. tomorrow we will meet with our follow -- fellow partners, australia and india, for our

fourth leaders summit, and second time meeting together in person. the quad is showing the world that cooperation among democracies can get big things done, and i'm grateful for your leadership. thank you for bringing us all together again to keep driving our progress as we advance a positive vision for the future of the into pacific region. -- indo pacific region. today we made several commitments to increase lateral cooperation and work together to ensure a free and open indo pacific that creates opportunity in austerity for all the people in the region. for our copperheads of -- comprehensive and resilient partnership, which we announced last year, we are in a situation now where we have invested our cooperation to spur innovation while delivering concrete progress for our people. promoting a secure 5g network and proving internet connectivity for partners in the

region, strengthening supply-chain resilience come up particularly on semiconductors, batteries and critical minerals. responding to covid-19 and building the greater health and security and a stronger health system is also part of the future. helping the world prepare for the next pandemic with our new cdc regional office right here in japan. cooperating on clean energy and decarbonization to tackle the climate crisis. after this, the united states and japan together with 11 other nations will be launching the indo pacific framework. it is a a commitment to working with rents and partners in the region that -- on challenges to ensure competitiveness. by ensuring trust in the digital economy. protecting workers. strengthening supply change. -- chains.

and tackling corruption. the two largest democracies, the two largest economies in the democratic world, the united states and japan, are demonstrating the strength of democracy in action. no cooperation -- our cooperation has been vital in organizing the global response to hold vladimir putin accountable for his brutal war in ukraine and attack on the norms and principles that are the foundation of our international order. mr. prime minister, you have been an outstanding partner through this crisis, and our unity in the g7 to oppose -- impose economic cost on russia and support the people of ukraine is sending a strong message about our willingness to defend a rules-based international order. i'm looking forward to continuing our discussions at the upcoming g7 summit in germany, and returning to japan next year in 2023 for the g7 summit. i welcome the prime minister's

announcement that the summit will take place in his hometown of hiroshima. today we also discussed ways to continue strengthening security cooperation the u.s. remains fully minute to japan's defense and we welcome the opportunity to work more closely together in an increasingly challenging security environment. i applaud the prime minister's determination to strengthen japanese defense capabilities as well. a strong japan and a strong u.s.-japan alliance is a force for good in the region. i support the peace and stability that will continue and we hope to increase across the taiwan straits, promote freedom of navigation in the east and south china seas, and deter the democratic people's republic of korea. thank you again for your partnership and friendship. the alliance between our two countries is stronger than it

has ever been and as important as it has ever been. i'm looking forward to exploring even more ways our relationship will help move us toward a future that benefits all people. thank you very much, and i appreciate your hospitality. >> thank you very much. we will now accept questions from the press. dani: president biden speaking with the japanese prime minister. a lot of talk about their meeting. biden is in asia, a lot of it had to do with defense. we heard that they have reaffirmed there is no change in the taiwanese policy. peace and prosperity the top priority of the indo pacific. shared concerns about nuclear missiles in north korea, and that biden supports japan's plan for a defense budget increase along with the yuan security council seat -- un security

council seat. manus: if you reflect on the talk about the power determined to -- power demonstrated by a biden visiting the region. the egregious aggression of russia and reaffirming the g7 response, which will take place in hiroshima. in terms of the support, obviously they have communicated very regularly during this heightened period of distress. he talks about japan suffering the atomic bomb attack and that the world must found to avoid such a catastrophe again. again, a very sort of subtle lien into my you remember we have -- lean into, you may were member we talked about perhaps a targeted nuclear strike in this conflict. i think the prime minister laying the ground and warning the world of the risks of what happened before. dani: certainly. again, a lot of it centered

around the discussion of defense, and it is a heightened geopolitical tensioned world we are living in. biden talked about putting a new cdc office in japan. so covid and those concerns never too far away. that is biden and uchida in tokyo. let's dive into the markets. we ended friday a little changed on the s&p 500, but this is what we've been discussing. is this the bottom? if not, where is it? how much further do we have to drop? the fed has said they want to contain inflation. stocks are big input into that. we are rebounding this morning after the second consecutive week of declines in u.s. stocks, the longest losing streak since 2001. up more than 1% on european futures. the concern in china has to do with new outbreaks in beijing. on friday of last week, we got a cut of the five-year lpr rate, but so far sentiment is not

holding up, down 7/10 of 1% in the csi 300. manus: the debate is this, according to larry summers, and it was made very clear last week and in the last 48 hours, larry summers saying this selloff is a feature and not a bug of fed policy. that plays into the mliv question and answers we've had, which is that there is another 10% lower to go in this s&p 500 market before you find a floor. mohamed el-erian was not wrong. on those prints you have in front of you, it's whether that is a bear market squeeze in the first instance. dani: it feels like the trend is in that every morning, if we get a green market, like we see this morning, it is one step word and two steps back. i think that is a spot on, the selloff being a feature and not a bug. the fed put has not disappeared,

and perhaps it is not the fed put anymore but the fed call. manus: my favorite line a missed my papers -- paperworks, it is old and traditional but it works -- the nasdaq is at 1.1% at the moment, so all right. 20 times forward earnings is as short as short can be, and with the shortest positioning in nasdaq since 2001. the question is, we had this uncomfortable downgrade from goldman-s we talked -- goldmans that we talked on friday about. the question is, has the bloodletting done in this market? dani: yeah. manus: you've got oil, bonds, the question is, bonds where the haven last week and the dollar

did not play haven state last week. u.s. treasuries rising this morning. you can see yields rise. ozzie yields on the back of political certainty with anthony albanese. bitcoin above the 30,000 level. crude over $111. dani: beijing has reported a record number of covid cases during its current outbreak, reviving concerned authorities may impose a lockdown. the growing outbreak underscores the challenges china faces and following its covid zero approach for more on this and how it is hitting sentiment, we are joined by rachel chang. on friday, it was more of a positive sentiment in china from the lpr cut, but even the new cases in beijing, what does the tone need to be defined support for this market? rachel: i think over the weekend

there was the feeling that the outbreaks in china were combing down. -- calming down. today, we see cases hit a record of 99 cases, obviously a small number by global standards, but for china it is a lot. there is renewed speculation that beijing might be put under lockdown, which has never happened before. what we are seeing is stocks, china's benchmark is retreating again. the broader asian equity gauge is trading slightly higher. i think the concern is about when will this be over and will these curbs keep escalating? manus: yes, that is the real fear, isn't it? that beijing migrates to a shanghai style lockdown, and that had grave local implications. rachel, thank you very much. coming up, back to davos.

francine is joined by the chairman of fortescue metals group. the interview is next on bloomberg. ♪

dani: it is "bloomberg daybreak: europe." manus, we've been monitoring the press conference between president biden and the japan these -- japanese prime minister. we are getting questions now, biden talking about a recession in the u.s. and he says it is not inevitable. we've had more talk of recession coming from the likes of goldman and others. biden is saying we have problems the rest of the world has but they are less consequential. also talking about the oil

picture and the release of the strategic oil, saying they helped but not enough, and they are having trouble getting things passed in the senate, a bit of an understatement. we've been talking about the bottom in the market and our mliv team has been looking at that. >> if only i knew >> i know but i can't tell you >> i don't have a crystal ball. >> i think were getting close to it. >> the trend still pointing downwards. >> i think we will end the year slightly higher than today. >> when we get some clarity from the fed, i think the markets will ease up. >> you will need more than that to stop this. >> we think over the summer, the s&p could be down to 3600. >> if anybody has answer, my

phone number -- [laughter] dani: a lot of people feel uncomfortable calling the bottom, i think we only got one clear answer. the mliv server -- survey, more than 1000 people responded and there is a clear cluster, around the 3600 level, 10% decline from friday's level. 37% decline from the january level. a lot of this is the trend, don't fight the fed if they are tightening financial conditions, and at the same time, stockmarkets falling is helpful. chairman powell said this is been orderly. the gauge falling to below 2400 would be about where the pandemic lows were. at the same time, 40% saying i d spreads will blowout to 250. i know you've been looking at some of the cross asset implications in the survey as well, you get a pessimistic

sense from what the results are showing. manus: yeah, even a number of the other surveys, there is a view that it's got to be difficult to find a bottom in the marketplace, whether you traded down to 3600. it is about positioning. we saw extremely rich positioning in the dollar, that rolled over last week. we have extreme short position in tech, the shortest it has been since 2006. on the bank of america survey, the question is if it is unambiguous, contrarian. you wonder when you get to moments like this whether it is desperation we will find the bottom. a few more lines coming through from the biden presser with the japanese prime minister. they will discuss china taylor -- tariffs with yellen on return to the u.s., and the china tariffs were imposed under the trump era, they are up for

reconsideration. we see these massive supply chain issues around the world. going back to one of the areas of cooperation between japan and the u.s., it will be on semiconductors. let's get up to speed with the first word headlines. we have a laura wright with us. laura: anthony albanese has been sworn in as australia's 31st prime minister. his labour party is promising swift action on promise change, greater agenda -- gender equality and growth. it is unclear whether he will be able to form a majority government or if minor parties and independents will be needed to pass legislation. president biden has warned about the growing outbreak of monkeypox, a rare and digitally deadly cousin of the smallpox virus, traditionally confined to regions of africa.

infections have been rising in europe and north america. it is reported there have been 20 cases in the u.k., with the health security agency expecting a significant rise in infections this week. pakistan's recently ousted prime minister is asking supporters to march to islamabad for a demonstration on wednesday. he wants the government to quit and new elections to be called the former pm held a -- new elections to be held. the former pm has been holding rallies with massive crowds. an executive has been suspended after he downplayed the risks of climate change. stuart kirk is the head of responsible investing for the bank, and criticized u.s. c4 paying too much -- hsbc for paying too much attention to climate change. hsbc said they don't reflect the bank. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries.

this is bloomberg. dani: thank you. let's get back to davos and the world economic forum. francine, haslinda? francine: yes, we are joined by andrew forrest, but we've kind of been going around, it is no snow, it is raining, you have a numberless. haslinda: it is a green davos. it is people but i miss the snow. -- beautiful, but i miss the snow. francine: one man who think that is davos because he is here to do business is andrew forrest of fortescue metals group. andrew: the hills are so much better without snow. francine: it is easier to get from a to b. you have a new prime minister in australia, is that exciting for

the pivot to green? andrew: yes, i think our climate policy has been embarrassing. we have to give our children more. for a decade we haven't. i think the new government will pivot toward making australia a global climate challenge -- champion, which it should have been. haslinda: are you optimistic that anthony albanese will be more optimistic in his clinicals -- climate goals? andrew: now that they are in government decisively, i think they will be more ambitious. compared to the rest of the world, australia has been lagging. francine: what is being more ambitious? andrew: i would like to say at least 50% or 60% down by 2030. when you have the leadership,

there's no reason why you can't do that. we intended the company to be down by 100% by 2030 p at -- 2030. we are in shipping and trucking and the industrial sector. francine: the country is still so dependent on iron ore and coal as well. would you put scope three on all of those industries today to make a difference? andrew: we have. francine: australia as a country? andrew: australia as a country is up to the government, but if you take the iron ore sector, all of us, we've got the scope three emissions of russia. we need to be moving fastest. fortescue is, rio tinto with enthusiasm. when fortescue goes green, all of the other companies have to say we can too. haslinda: is it time for

australia to level the playing field and remove the rebate concessions for the energy and mining sector? andrew: it is so hard. the world and australians don't consume quite as much power. i'm saying level the playing field, put the same concessions on a main -- on ammonia as you have on diesel and fuels. don't force consumers to fill up with fossil fuel, which will pollute the world. francine: you talk about green hydrogen, this is your baby and you think it will change the future. what does it mean for your company, who is in charge of this? andrew: we have announced mark hutchison from ge, and absolutely fantastic guy. we've got a thick management bench now, 10 or 12 of the top executives in australia.

i don't intend to be there forever, but this is a critical transition. if fortescue goes green, so must the rest of the world. i'm putting everything in order to make sure it goes smoothly. haslinda: you reduce -- produce iron ore and green hydrogen. what is the thinking having both of them under the same roof? andrew: green steel, green iron, green fertilizers, green cement. it is to set the example that a huge industrial company, highly profitable and getting more profitable because were going green. to get rid of the greenwashing rubbish, people spend a fortune on advertising when all they are doing is putting out more pollution. we are stopping that and saying actually put your money into new fuels, ammonia, green hydrogen come and stop greenwashing. francine: it is expensive and i know you're trying to lead by example, but we need to be much tougher with companies that

pollute and are not going through a transition, or is the war in ukraine a free pass? andrew: you know what is really tough? greenwashing paid when people say -- greenwashing. when people say we are using clean fuels and clean hydrogen, when you hear the word clean you can be assured of greenwashing. you've heard clean coal, you've heard cancer free tobacco. get hard on greenwashing. it is our biggest risk. so many countries say one thing to shareholders and public energy in another. francine: what does your pen say? andrew: we stand with ukraine. francine: president zelenskyy will address the forum in davos and a lot of participants are very keen to hear what he has to say. haslinda: quite a bit of delegation from ukraine, hoping for more help for the war.

francine: also the mayor of kyiv later on. that was andrew forrest, from fortescue. manus: great interview. let's check on the yuan, reacting to the biden lines that the tariffs, just before we went to speak to haslinda and francine, discussing tariffs with yellen on return to the u.s., seeing an immediate reaction. dani: you on up at 6/10 of a percent. this as inflation grips the u.s.. we are back to davos later this hour. this is bloomberg. ♪

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anna: